Welcome to 1911dom. Nice pistola. Thank your grandfather again for that.
In my opinion, you either leave it as-is, or go for a custom/refurb, depending on what use you intend for the pistol. I lean to the latter, customization/refurbishment. First thing I would do is get some nice hardwood grips on there - full length magwell cut, with mainspring housing pin hole covered, just my personal choice. Next thing to consider is sights. There are good drop-in sights available, as long as you don't want tritium night sights. Your best options for tritium sights will require maching of the slide, plus refinishing. Hard to tell from the photos, but the finish looks to have some good scratches on it, so I'd be looking to get it dehorned (sharp edges removed) and refinished anyway. Next thing is the most important - trigger job, using high quality components. Your pistol looks as if it might have been worked on before (there is an extended slide stop in evidence), so this may have already been done. I'd ditch that extended slide stop, by the way. I hear they can be trouble, causing the slide to lock open prematurely. Most custom jobs include a beavertail grip safety, but I like those Commander type grip safeties, like the one on your pistol, so I'd probably keep that on, in this case. Wouldn't really want to change the pistol much - mostly just freshen it up. Think of it as recycling.
In my opinion, you either leave it as-is, or go for a custom/refurb, depending on what use you intend for the pistol. I lean to the latter, customization/refurbishment. First thing I would do is get some nice hardwood grips on there - full length magwell cut, with mainspring housing pin hole covered, just my personal choice. Next thing to consider is sights. There are good drop-in sights available, as long as you don't want tritium night sights. Your best options for tritium sights will require maching of the slide, plus refinishing. Hard to tell from the photos, but the finish looks to have some good scratches on it, so I'd be looking to get it dehorned (sharp edges removed) and refinished anyway. Next thing is the most important - trigger job, using high quality components. Your pistol looks as if it might have been worked on before (there is an extended slide stop in evidence), so this may have already been done. I'd ditch that extended slide stop, by the way. I hear they can be trouble, causing the slide to lock open prematurely. Most custom jobs include a beavertail grip safety, but I like those Commander type grip safeties, like the one on your pistol, so I'd probably keep that on, in this case. Wouldn't really want to change the pistol much - mostly just freshen it up. Think of it as recycling.